The State Property Fund of Ukraine (SPFU) has unveiled the Large Privatisation-2024 project, an ambitious initiative to attract strategic investors and stimulate economic growth through the privatisation of state-owned assets.
Following the success of small-scale privatisation efforts, this initiative is a key element of Ukraine’s broader economic reform strategy. It aims to enhance transparency, improve efficiency, and drive foreign investment into the country. The key highlights of the privatisation effort are as follows:
- Top assets for privatisation. The programme has identified several high-value assets that will be offered to investors. These assets represent some of the most valuable and strategically important properties available for privatisation (more information can be found here):
- the Ukraine Hotel in Kyiv (auction scheduled for 18 September 2024 with a starting price of UAH 1.05bn/EUR 23.30m);
- the United Mining and Chemical Company, the biggest producer of titanium ore in Ukraine (auction scheduled for 9 October 2024 with a starting price of UAH 3.9bn/EUR 86.5m);
- LLC “AEROC”, a leading producer of aerated concrete products with its facilities located in the Kyiv and Lviv regions;
- LLC “Demurinskiy Mining and Processing Plant”, which is developing the Vovchansk deposit of titanium and zirconium; and
- LLC “Investment Union “Lybid”, owner of Ocean Plaza, one of the biggest malls in Kyiv.
- Strategic goals. The SPFU aims to use the proceeds from privatisation to bolster the national budget, reduce the state’s economic footprint, and improve corporate governance across various sectors. Key goals also include improving enterprise performance, enhancing property utilisation, and modernising production.
- Prozorro.Sale platform. For the first time in Ukrainian history, large-scale privatisation will be conducted via the Prozorro.Sale platform, ensuring a transparent and competitive bidding process. This platform has proven effective in promoting fair competition and preventing corruption in smaller privatisation auctions.
- Investor confidence. The initiative comes at a crucial time when Ukraine is seeking to rebuild and stabilise its economy amid ongoing challenges. The government hopes that this privatisation drive will signal Ukraine’s commitment to economic reforms and attract substantial foreign direct investment.